Annual Meeting of Shareholders April 15, 2014 Please refer to earnings release dated January 23, 2014 and 10-K dated February 24, 2014 for further information, including full results reported on a U.S. GAAP basis. Exhibit 99.1 Fifth Third Bank | All Rights Reserved © |
2 Fifth Third Bank | All Rights Reserved © 2013: A record year Return on avg. assets Net income to common ($MM) Generated highest level of net income in Company’s history Steadily improving profitability providing positive momentum Net charge-off ratio Problem assets at lowest levels in five years Tier 1 common ratio ALLL / NPLs Coverage levels among highest in the industry Strong and stable capital ratios 1 2 Total payout ratio Net payouts to shareholders of $1.3B in 2013 2 $511 $503 $1,094 $1,541 $1,799 2009 2010 2011 2012 2013 6% 6% 23% 63% 74% 31% 39% 11% 74% 2009 2010 2011 2012 2013 0.6% 0.7% 1.2% 1.3% 1.5% 2009 2010 2011 2012 2013 7.0% 7.5% 9.4% 9.5% 9.4% 2009 2010 2011 2012 2013 3.20% 3.02% 1.49% 0.85% 0.58% 2009 2010 2011 2012 2013 127% 179% 157% 180% 211% 2009 2010 2011 2012 2013 1 2013 is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013. 2012 and 2013 include repurchases of shares in the amount of after-tax gains on the sale of Vantiv shares. Non-GAAP measure; see Reg. G reconciliation in appendix; presented under current U.S. capital regulations 1 |
3 Strong capital return to shareholders 2013 total payout yield (regional peers) Increased common stock dividend 31% and repurchased 3% of outstanding common stock $1.3 billion in capital returned to common shareholders $710MM common stock repurchases (net of $398MM shares issued related to Series G conversion) $407MM common dividends declared $212MM common stock repurchases utilizing AT Vantiv gains $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2013 Net Payouts ($MM) 7.4% 5.6% 5.4% 4.9% 4.8% 3.9% 3.7% 3.6% 2.5% 2.4% 2.3% 1.8% 0.5% 0% 1% 2% 3% 4% 5% 6% 7% 8% Total payout yield equals dividend yield plus shares repurchased ($) / reported market cap at 12/31/13. For FITB, shares repurchased ($) is net of the issuance of shares valued at $398MM related to the Series G preferred stock conversion on July 1, 2013. Fifth Third Bank | All Rights Reserved © |
4 Capital management – core focus Current capital requirements Tier 1 common equity ratio 5% CCAR supervisory reference minimum Future capital requirements Basel III Tier 1 common equity ratio 4.5% 2015 Basel III minimum 7.0% 2015 Basel III minimum 9.4% 0% 2% 4% 6% 8% 10% 2013 9.0% 0% 2% 4% 6% 8% 10% 2013 • 2014 CCAR plan not objected to by Federal Reserve Board • Included the following potential actions for the period 2Q14-1Q15, subject to Board approval and other factors: – The potential increase in the quarterly common stock dividend to $0.13 per share – The potential repurchase of common shares in an amount up to $669MM – The additional ability to repurchase shares in the amount of any after- tax gains from the sale of Vantiv, Inc. stock, if realized • 2014 CCAR plan designed to maintain regulatory common equity capital ratios generally at current levels Fifth Third Bank | All Rights Reserved © 1 1 1 Non-GAAP measure; See Reg. G reconciliation in appendix. Presented under current U.S. capital regulations. The pro forma Basel III Tier I common equity ratio is management’s estimate based upon its current interpretation of recent prospective regulatory capital requirements approved in July 2013. |
5 2013 total return (price appreciation plus dividends) Source: Bloomberg, 12/31/12-12/31/13 Market recognizing Fifth Third’s progress FITB +42% S&P Banks Index +36% S&P 500 Index +32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Fifth Third Bank | All Rights Reserved © |
6 2013 key themes • Solid returns and healthy balance sheet with strong growth potential • Continued long history of disciplined expense management • Executed on strategic plans: – Enhancing scale and scope of Commercial Bank – Redesign of Consumer Bank for long term profitability – Growing wealth management and brokerage services • Balanced capital management supporting growth and shareholder returns Fifth Third Bank | All Rights Reserved © |
7 Looking at banking differently Together we’ve donated a total of to Stand Up to Cancer $1,126,350 Fifth Third Bank | All Rights Reserved © Homeowner Reemployment Program • First in the industry to offer job search assistance to unemployed mortgage borrowers • 30% - 40% reemployed after 6 months • Directing donations toward cancer research with every qualifying purchase made using a Fifth Third SU2C debit or credit card |
8 Accolades First and only firm recognized as “Five STAR Servicer” March 26, 2014 Second time recognized and one of 32 companies chosen April 3, 2013 Power Partner award One of only 18 companies chosen November 14, 2013 Best Overall, Best Visibility of Major Fees, and Best Clarity of Fee Information August 2013 Significant national and local recognition across diverse areas Business Practices • Employment • Green Initiatives • Customer Service • Philanthropy Fifth Third Bank | All Rights Reserved © |
9 Near-term priorities Fifth Third Bank | All Rights Reserved © Focused Segmentation • Identify the right customer segments and understand their unmet needs • Deliver better, more focused value propositions more effectively Distinctive Execution • Offer customers differentiated advice, service and products that deliver greater value Innovation • Finding ways to improve capabilities based on insights derived from listening to customers and forming strategic partnerships Growth Accelerators • Longer-term investments to build our presence, our customer base, and our business Focused Segmentation Distinctive Execution Innovation Growth Accelerators |
Fifth Third Bank | All Rights Reserved © |
11 Cautionary statement Fifth Third Bank | All Rights Reserved © This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. There are a number of important factors that could cause future results to differ materially from historical performance and these forward- looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to maintain required capital levels and adequate sources of funding and liquidity; (7) maintaining capital requirements may limit Fifth Third’s operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely affect the banking industry and/or Fifth Third; (10) competitive pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20) difficulties from the separation of or the results of operations of Vantiv, LLC; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth Third’s earnings and future growth; (22) ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. |
12 Regulation G Non-GAAP reconciliation Fifth Third Bank | All Rights Reserved © Fifth Third Bancorp and Subsidiaries Regulation G Non-GAAP Reconcilation $ and shares in millions (unaudited) 2013 2012 2011 2010 2009 Total Bancorp shareholders' equity (U.S. GAAP) $14,589 $13,716 $13,201 $14,051 $13,497 Goodwill and certain other intangibles (2,492) (2,499) (2,514) (2,546) (2,565) Unrealized gains (82) (375) (470) (314) (241) Qualifying trust preferred securities 60 810 2,248 2,763 2,763 Other 19 33 38 11 (26) Tier I capital 12,094 11,685 12,503 13,965 13,428 Less: Preferred stock (1,034) (398) (398) (3,654) (3,609) Qualifying trust preferred securities (60) (810) (2,248) (2,763) (2,763) Qualifying noncontrolling interest in consolidated subsidiaries (37) (48) (50) (30) - Tier I common equity (a) 10,963 10,429 9,807 7,518 7,056 Risk-weighted assets, determined in accordance with prescribed regulatory requirements (b) 116,736 109,699 104,945 100,561 100,933 Ratio: Tier I common equity (a) / (b) 9.39% 9.51% 9.35% 7.48% 6.99% Basel III - Estimated Tier 1 common equity ratio December 2013 Tier 1 common equity (Basel I) $10,963 Add: Adjustment related to capital components $82 Estimated Tier 1 common equity under final Basel III rules without AOCI (opt out)(c) $11,045 Add: Adjustment related to AOCI $82 Estimated Tier 1 common equity under final Basel III rules with AOCI (non opt out) (d) $11,127 Estimated risk-weighted assets under final Basel III rules (e) 122,851 Estimated Tier 1 common equity ratio under final Basel III rules (opt out) (c) / (e) 8.99% Estimated Tier 1 common equity ratio under final Basel III rules (non opt out) (d) / (e) 9.06% (c), (d) (e) Under the final Basel III rules, non-advanced approach banks are permitted to make a one-time election to opt out of the requirement to include AOCI in Tier 1 common equity. Other adjustments include mortgage servicing rights and deferred tax assets subject to threshold limitations and deferred tax liabilities related to intangible assets. Key differences under Basel III in the calculation of risk-weighted assets compared to Basel I include: (1) Risk weighting for commitments under 1 year; (2) Higher risk weighting for exposures to securitizations, past due loans, foreign banks and certain commercial real estate; (3) Higher risk weighting for mortgage servicing rights and deferred tax assets that are under certain thresholds as a percent of Tier 1 capital; and (4) Derivatives are differentiated between exchange clearing and over-the-counter and the 50% risk-weight cap is removed. For the Year Ended |